There is no doubt: seven years instead of 12 years in federal prison is a major win for Charlie Javice. Let’s talk about what that means, what happens with those seven years, what happens next for her in prison, and how she could make use of this experience.

On Monday, Judge Alvin Hellerstein sentenced Javice to seven years — 85 months — in federal prison for her role in defrauding JPMorgan Chase in the $175 million Frank acquisition. She sold Frank, worked there for a year as a managing director, and then it unraveled. She was indicted, didn’t accept responsibility, went to trial, lost.

Her lawyers asked for 18 months — insane. Prosecutors asked for 12 years. She got seven. The judge wasn’t a buyer on either extreme.

During sentencing, Judge Hellerstein said her crimes “required a great deal of duplicity,” but also that she was “a good person who has done good deeds.” Then he told her: “I don’t think you will be committing any crimes, and I think you will be devoting your life to service, but others need to be deterred.”

A So-Called Sympathetic Judge

A journalist told me, “Can you believe she only got seven years? What a sympathetic judge.”

I think we’ve become so conditioned to extreme sentences that seven years doesn’t sound like much. But seven years is still a very long time, even in the age of prison reform and the First Step Act — reforms my partner Michael Santos is advocating for directly with the Bureau of Prisons.

Hellerstein looked at the totality of her life. He acknowledged her good deeds. He believed she could devote her life to service. That’s restraint.

But here’s the danger of being seen as the beneficiary of a “sympathetic judge”: now you’re under a microscope.

If Javice gets into trouble in prison, if she complains too much about conditions (as Elizabeth Holmes reportedly did), or if she wastes her time without building anything meaningful, she’ll reinforce the perception that white-collar defendants don’t deserve leniency. Worse, she’ll make it harder for future defendants in front of Hellerstein.

Judges don’t want to feel burned. If they give someone a break and that person squanders it, they’ll be harsher the next time.

The Appeal Contradiction

Most defendants convicted at trial appeal automatically. They figure they have nothing to lose. But appealing while also asking for leniency creates a contradiction.

That’s what Javice did. She told the judge she had made a mistake but didn’t admit she committed a crime. Hellerstein didn’t buy it: “She said she made a mistake. She doesn’t admit she committed a crime. I don’t think it’s an acceptance of responsibility.”

That contradiction likely cost her. She might have received less time if she had picked a lane. Either fully own it — “Your Honor, I should not have gone to trial, I accept full responsibility” — or stick with the appeal and don’t ask for mercy. Trying to do both makes remorse look like a tactic, not reality.

I’ve seen defendants get shorter sentences simply because they removed the government’s burden of handling an appeal. But Javice wanted it both ways, and judges don’t reward that.

The Cost of Winning the Wrong Way

Her lawyers asked for 18 months. Unrealistic. Then they argued JPMorgan wasn’t really a victim because its loss was small compared to its capitalization. That’s a losing argument.

It’s like saying it’s fine to steal from the government because the treasury is massive. Judges don’t buy it. Hellerstein didn’t: “A fraud remains a fraud whether you outsmart someone who is smart or someone who is a fool.”

Even if that argument had bought her less prison time, it would damage her credibility long term. Judges, case managers, and BOP staff remember when defendants minimize their crimes. It lingers.

I’m no fan of JPMorgan. This is a bank that fires every felon who tries to get an account, while its CEO Jamie Dimon writes op-eds about second chances. That’s boilerplate PR. But that doesn’t change the fact they were defrauded. They had shareholders. The fraud caused harm.

A better strategy would have been to accept that reality and argue the consequence shouldn’t be 12 years in prison. Minimizing victims never plays well.

Deterrence: Why I Don’t Buy It

Hellerstein said it: “Others need to be deterred.” Prosecutors argue this in every case. Judges repeat it too.

But deterrence doesn’t work the way they claim. People don’t cross the line because sentences aren’t long enough. They cross the line because they don’t think they’ll get caught.

I’ve sat in countless sentencing hearings. Judges always talk about deterrence. But if they truly believe someone will never return to court, why prison at all? Deterrence becomes the excuse.

In my experience, what actually deters people isn’t the sentence length. It’s the collateral consequences: lost licenses, lost jobs, lost reputation, shame, embarrassment, and headlines in the New York Times. Javice is already serving a sentence in those ways.

If she wants to make deterrence real, she has to use her time to teach. That’s why I speak at USC, Stanford, and other schools. I share cautionary tales. I talk about the pressure, the rationalizations, the shame, and the fallout. That has an impact on students and business leaders far more than the fact I served 18 months.

That’s what Javice should do. Complete ethics and compliance programs. Write about the pressure she felt, how she rationalized it, what she’d do differently. Speak later to universities and companies about the consequences of cutting corners. That’s deterrence in practice.

The Forbes 30 Under 30 Blind Spot

Javice was a Forbes 30 Under 30 star. That recognition created enormous pressure.

I can relate. At 26, I became the youngest broker Bear Stearns had ever hired. That title brought pressure and ego I wasn’t ready for. Titles create expectations. You start believing your own press.

Forbes didn’t make Javice commit fraud. But being profiled too early fueled the urgency and arrogance. It probably made JPMorgan rush diligence, eager to acquire a star founder.

She needs to acknowledge that culture helped fuel the fraud. And she should use her time in prison to write about it, to teach young leaders not to buy into premature validation.

The Limits of “Good Deeds” Letters

Her lawyers submitted stacks of character letters. Hellerstein acknowledged them, repeating that she was “a good person who has done good deeds.” Then he sentenced her to seven years anyway.

That’s the lesson: character letters help, but they don’t replace the work the defendant has to do. Judges want to know what comes next.

Letters should be built into a release plan — a blueprint of how the defendant will contribute moving forward. Without that, they’re just nostalgia.

The Prison Teaching Trap

Javice has skills in finance and coaching. Teaching in prison could be her strongest contribution. But there’s a trap. If she rushes into that role — “I went to Wharton, I should lead this class” — staff will resent it, peers will see it as arrogance, and it will look like manipulation.

In prison, credibility is fragile. She needs to do the work first: avoid infractions, complete her own programs, build a reputation for consistency. Only then can she teach.

Teaching too quickly looks performative. Authentic teaching comes later, when she’s proven she can follow through.

Final Thoughts

I have empathy for Javice and her family. I doubt she ever thought she’d be here. Very few people do.

She should feel grateful — as strange as it sounds — that she only got seven instead of twelve. Now she has to prove worthy of that shorter sentence.

If she uses prison to document, plan, and contribute, this can become a stepping stone instead of a permanent scar. She can walk into the next phase saying: “Here’s what I’ve done, here’s what I’ve learned, here’s how I’m helping others avoid my mistakes.”

That’s what I did. I refused to let 18 months at Taft become a life sentence. I wrote, I spoke, I documented, I created value. That changed everything when I came home.

The same opportunity is in front of her. The question is: will she take it?

Thank you,
Justin Paperny